Originally Posted by walshbj
It seems like they definitely have to hold stuff back from the touch, there's a huge difference in the price between the iPhone without subsidy and the iPod touch.
This is a rumour, just as it has been rumoured, absurdly, that Apple is going to turn to OLED very soon.
It makes no sense for Apple to not use the exact same camera in the Touch that is found in the iPhone, if the Touch is to remain essentially an iPhone minus the phone part. Economies of scale means the cost per unit would go down as the number of units ordered goes up.
I'm not convinced that Apple will continue to design the Touch strictly as a variation of the iPhone. It's a device that cries out for a different set of specs better suited to what people are doing with the device. I realize that rumours are not pointing in that direction but on the other hand, the rumours being offered have gone in some puzzling directions, meaning that all we're getting is unimaginative guessing.
While sales of the Touch have been outstanding, if Apple stands still, that can change very quickly. As touch-screen devices multiply, and not just from Apple, a device like the Touch that has no phone element yet sports a very small screen, relatively speaking, risks becoming irrelevant. It would be logical to up the screen size of the Touch, while keeping it compact enough for it to remain pocketable. I don't think there's really room in Apple's line-up for both a Touch as currently sized and something that slots in between that and the iPad.
Design a Touch around the current screen, then design one around a 5" screen. Compare the devices. The 5" Touch would offer better browsing, e-reading, game play, video playback, and would certainly be better suited for displaying photos. The current Touch would more easily slip into one's pocket but would a Touch sporting a 5" screen be difficult to slip into a pant pocket? I have a notepad that I have slipped into my pocket without a second's thought often that measures 4" X 6". The Touch measures roughly 2.5" X 4.5". Plenty of room between those two for increasing screen size with a negligible impact on portability. One would presume a cost advantage for the current design but how much of an advantage? Up to this point the Touch has shared a screen with the iPhone but the iPhone just went to the Retina display. Put a larger screen on the Touch but with the same resolution as the Retina display and chances are you have similarly priced screens. The larger screen would possess lower pixel density and hence likely be easier to produce.
What are the odds that after a very minimal update to the Touch last year, Apple would merely take the Touch as is and tack on a 3-megapixel camera that would be inferior to a lot of phone cameras, including the iPhone. At the very least you'd figure the next Touch would get the hardware bits from the new iPhone, including the Retina display, the 5-megapixel camera, faster processor, etc. It would not be a shock if Apple went beyond such an obvious update, evolving the Touch into something more than an iPhone variant. What people use the Touch for has evolved and as such isn't it logical to evolve the hardware to better accommodate what it's being used for? To do otherwise seems rather un-Apple-like.